The European Vehicle Producers’ Affiliation (ACEA) is making an pressing plea to the European Fee to behave instantly to forestall taxes being imposed on electrical autos traded between the EU and the UK from January 2024.

If the Fee fails to behave, a ten% tariff might be positioned on EU electrical automobile exports to the UK – its largest buying and selling associate. This might value EU automobile makers €4.3 billion over the subsequent three years, doubtlessly decreasing electrical automobile manufacturing by some 480,000 items, the equal output of two average-size auto factories.

Underneath extra restrictive ‘guidelines of origin’ resulting from apply from January, the one option to keep away from these duties might be to supply all battery components and a few essential battery materials within the EU/UK. That is virtually unimaginable to attain right now.

“Driving up shopper costs of European electrical autos, on the very time when we have to struggle for market share within the face of fierce worldwide competitors, is just not the suitable transfer – neither from a enterprise nor an environmental perspective,” acknowledged Luca de Meo, ACEA President and CEO of Renault Group. “We’ll successfully be handing a piece of the market to international producers.”

“Europe must be supporting its business within the net-zero transition as different areas do – not hindering it,” added de Meo. “There’s a quite simple and simple answer: lengthen the present phase-in interval for battery guidelines by three years. We urge the Fee to do the suitable factor.”

Huge investments are being made in European battery provide chains, however extra time is required to construct up the type of scale wanted to satisfy the foundations of origin.

Driving up shopper costs of European electrical autos, on the very time when we have to struggle for market share within the face of fierce worldwide competitors, is just not the suitable transfer.

SOURCE: ACEA